Measuring economic performance

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  • Created by: cdownie
  • Created on: 04-03-15 20:17
What is economic growth
a measure of an increase in real GDP
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What is potential economic growth
The measure of the increase in capacity in an economy (outward shift in PFF curve)
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What is a recession
Two consecutive quarters of negative economic growth
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What is likely to happen in a recession
Less spending, income and output in the economy. Also likely to lead to firms closing, increased unemployment and a fall in living standards.
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What does an increase in GDP cause
Likely to cause an increase in standards of living, so people can afford more goods and services or feel that their lives are better.
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Other cards in this set

Card 2

Front

What is potential economic growth

Back

The measure of the increase in capacity in an economy (outward shift in PFF curve)

Card 3

Front

What is a recession

Back

Preview of the front of card 3

Card 4

Front

What is likely to happen in a recession

Back

Preview of the front of card 4

Card 5

Front

What does an increase in GDP cause

Back

Preview of the front of card 5

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